Florida
Law
|
This year, a newly created Florida Statute s.
215.5586, was introduced in regard to the
extraordinary severe weather our state has
experienced in the past three years.
Section 215.5586, Florida Comprehensive
Hurricane Damage Mitigation Program –
There is established within the Department of
Financial Services the Florida Comprehensive
Hurricane Damage Mitigation Program. This
section does not create an entitlement for
property owners or obligate the state in any way
to fund the inspection or retrofitting of
residential property in this state.
Implementation of this program is subject to
annual legislative appropriations. The program
shall be administered by an individual with
prior executive experience in the private sector
in the areas of insurance, business, or
construction. The program shall develop and
implement a comprehensive and coordinated
approach for hurricane damage mitigation that
shall include the following:
(1) WIND CERTIFICATION AND HURRICANE
MITIGATION INSPECTIONS –
(a) Free home-retrofit inspections of
site-built, residential property, including
single-family, two-family, three-family, or
four-family residential units, shall be offered
to determine what mitigation measures are needed
and what improvements to existing residential
properties are needed to reduce the property's
vulnerability to hurricane damage. The
Department of Financial Services shall establish
a request for proposals to solicit proposals
from wind certification entities to provide at
no cost to homeowners wind certification and
hurricane mitigation inspections.
The inspections provided to homeowners, at a
minimum, must include:
1. A home inspection and report that summarizes
the results and identifies corrective actions a
homeowner may take to mitigate hurricane damage.
2. A range of cost estimates regarding the
mitigation features.
3. Insurer-specific information regarding
premium discounts correlated to recommended
mitigation features identified by the
inspection.
4. A hurricane resistance rating scale
specifying the home's current as well as
projected wind resistance capabilities.
(b) To qualify for selection by the department
as a provider of wind certification and
hurricane mitigation inspections, the entity
shall, at a minimum:
1. Use wind certification and hurricane
mitigation inspectors who:
a. Have prior experience in residential
construction or inspection and have received
specialized training in hurricane mitigation
procedures.
b. Have undergone drug testing and background
checks.
c. Have been certified, in a manner satisfactory
to the department, to conduct the inspections.
2. Provide a quality assurance program including
a reinspection component.
(2) GRANTS -
Financial grants shall be used to encourage
single-family, site-built, owner-occupied,
residential property owners to retrofit their
properties to make them less vulnerable to
hurricane damage.
(a) To be eligible for a grant, a residential
property must:
1. Have been granted a homestead exemption under
chapter 196.
2. Be a dwelling with an insured value of
$500,000 or less.
3. Have undergone an acceptable wind
certification and hurricane mitigation
inspection.
A residential property which is part of a
multi-family residential unit may receive a
grant only if all homeowners participate and the
total number of units does not exceed four.
(b) All grants must be matched on a
dollar-for-dollar basis for a total of $10,000
for the mitigation project with the state's
contribution not to exceed $5,000.
(c) The program shall create a process in
which mitigation contractors agree to
participate and seek reimbursement from the
state and homeowners select from a list of
participating contractors. All mitigation must
be based upon the securing of all required local
permits and inspections. Mitigation projects are
subject to random reinspection of up to at least
10 percent of all projects.
(d) Matching fund grants shall also be made
available to local governments and nonprofit
entities for projects that will reduce hurricane
damage to single-family, site-built,
owner-occupied, residential property.
(e) Grants may be used for the following
improvements:
1. Roof deck attachment
2. Secondary water barrier;
3. Roof covering;
4. Brace gable ends;
5. Reinforce roof-to-wall connections;
6. Opening protection; and
7. Exterior doors, including garage doors.
(f) Low-income homeowners, as defined in
s.420.0004(9), who otherwise meet the
requirements of paragraphs (a) and (c) are
eligible for a grant of up to $5,000 and are not
required to provide a matching amount to receive
the grant. Such grants shall be used to retrofit
single-family, site-built, owner-occupied,
residential properties in order to make them
less vulnerable to hurricane damage.
(3) EDUCATION AND CONSUMER AWARENESS -
Multimedia public education, awareness, and
advertising efforts designed to specifically
address mitigation techniques shall be employed,
as well as a component to support ongoing
consumer resources and referral services.
(4) ADVISORY COUNCIL -
There is created an advisory council to
provide advice and assistance to the program
administrator with regard to his or her
administration of the program. The advisory
council shall consist of:
(a) A representative of lending institutions,
selected by the Financial Services Commission
from a list of at least three persons
recommended by the Florida Bankers Association.
(b) A representative of residential property
insurers, selected by the Financial Services
Commission from a list of at least three persons
recommended by the Florida Insurance Council.
(c) A representative of home builders, selected
by the Financial Services Commission from a list
of at least three persons recommended by the
Florida Home Builders Association.
(d) A faculty member of a state university,
selected by the Financial Services Commission,
who is an expert in hurricane-resistant
construction methodologies and materials.
(e) Two members of the House of Representatives,
selected by the Speaker of the House of
Representatives.
(f) Two members of the Senate, selected by the
President of the Senate.
(g) The Chief Executive Officer of the Federal
Alliance for Safe Homes, Inc., or his or her
designee.
(h) The senior officer of the Florida Hurricane
Catastrophe Fund.
(i) The executive director of Citizens Property
Insurance Corporation.
(j) The director of the Division of Emergency
Management of the Department of Community
Affairs.
Members appointed under paragraphs (a)-(d) shall
serve at the pleasure of the Financial Services
Commission. Members appointed under paragraphs
(e) and (f) shall serve at the pleasure of the
appointing officer. All other members shall
serve voting ex officio. Members of the advisory
council shall serve without compensation but may
receive reimbursement as provided in s. 112.061
for per diem and travel expenses incurred in the
performance of their official duties.
(5) FEDERAL FUNDING -
The department shall use its best efforts to
obtain grants or funds from the federal
government to supplement the financial resources
of the program.
(6) RULES -
The Department of Financial Services shall adopt
rules pursuant to ss. 120.536(1) and 120.54
governing the Florida Comprehensive Hurricane
Damage Mitigation Program. The department shall
also adopt rules establishing priorities for
grants provided under this section based on
objective criteria that gives priority to
reducing the state's probable maximum loss from
hurricanes. However, pursuant to this overall
goal, the department may further establish
priorities based on the insured value of the
dwelling, whether or not the dwelling is insured
by Citizens Property Insurance Corporation and
whether or not the area under consideration has
sufficient resources and the ability to perform
the retrofitting required.
A Florida homeowner whose primary residence is a
single-family, site-built home with an insured
value of $500,000 or less and has a homestead
exemption is eligible to receive a home
inspection at the cost of the state.
A Florida homeowner whose primary residence has
a homestead exemption and an insured value of
$500,000 or less that is a unit in a residential
building of up to four units is also eligible
apply for a free home inspection. All unit
owners in a residential building must agree to
participate in the program to be eligible for
free home inspections.
Properties not eligible for free home
inspections include mobile homes or manufactured
homes, second homes, rental properties,
apartments, condominiums or businesses.
627.428 Attorney's fee.--
(1) Upon
the rendition of a judgment or decree by any of the
courts of this state against an insurer and in favor
of any named or omnibus insured or the named
beneficiary under a policy or contract executed by
the insurer, the trial court or, in the event of an
appeal in which the insured or beneficiary prevails,
the appellate court shall adjudge or decree against
the insurer and in favor of the insured or
beneficiary a reasonable sum as fees or compensation
for the insured's or beneficiary's attorney
prosecuting the suit in which the recovery is had.
(2) As to suits based on claims arising under
life insurance policies or annuity contracts, no
such attorney's fee shall be allowed if such suit
was commenced prior to expiration of 60 days after
proof of the claim was duly filed with the insurer.
(3) When so awarded, compensation or fees of the
attorney shall be included in the judgment or decree
rendered in the case.
History.--s. 477, ch. 59-205; s. 1, ch.
67-400; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2,
3, ch. 81-318; ss. 376, 377, 809(2nd), ch. 82-243;
s. 79, ch. 82-386; s. 114, ch. 92-318.
Back to top
Changes in Sinkhole and Hurricane Coverage Laws in Florida
Since the
terrible hurricane seasons of 2004 and 2005, there
have been major changes to the laws and statutes
that govern just how private insurance companies do
business in the State of Florida.
Property
insurance for homes, apartments and businesses in
Florida have been spiralling out of control as
companies continue to threaten to pull out of the
market every time a serious storm hits. As the
stakes get higher with every year, so does the scope
of change in laws.
Before the
2005 hurricane season began, there were quite a few
changes in the regulations and bylaws that regulate
property insurance coverage in
Florida.
These included provisions to protect
homeowners from insufficient settlements, excessive
rate hikes and hurricane deductible notification
requirements.
However, the 2004 provision that requires
your insurer to contact you with the status of your
hurricane damage claim within 14-days of initial
filing does remain in place.
Insurance
companies in Florida are also prevented from dropping
coverage on homes and businesses until 3 months
after existing claims are settled.
However, even the 2004 laws only require the
insurer to pay 50% of the cost incurred when an
older home must be rebuilt to more recent building
codes.
The laws
that allow insurers to drop coverage have been
expanded.
Currently the only recourse for homeowners
who feel they’ve been unfairly dropped is to prove
they’ve been discriminated against on the basis of
race, religion, gender or ethnicity.
Otherwise, you’ve got 90 days to find another
insurer.
In an effort
to placate the insurers who threatened to leave and
lower premiums, the “My Safe Florida Home Program”
was created by legislative action.
This program uses state funds to pay for
evaluations of homes across the state to determine
how they’d stand up to wind damage from a typical
hurricane.
Some monies were set-aside at that time to
assist homeowners with making improvements.
Up to half the upgrade cost may be paid on
homes worth less than half-a-million dollars.
In another
unfortunate development for local homeowners, the
so-called “insurer of last resort,” Citizens
Property Insurance Corp., is now the largest and
fastest growing insurer in Florida as more and more
people get dropped from their coverage by just being
in an area of sinkhole or hurricane activity. Avoid
Citizens if you can. Florida newspapers, television newscasts and
internet postings are full of reports of
incompetence and mishandling of claims and
investigations by Citizens.
In
January of 2007, a special session of the Florida
Legislature was held to address a proposed 75%
increase in the average cost of homeowner’s
insurance (and hurricane coverage in particular) in
the state.
The resultant compromise will decrease the
premium prices for homeowners in coastal and
southern counties while raising the rates on
businesses and, interestingly enough, auto insurance
premiums for everyone.
You can
count on the insurance industry continuing to fight
against consumer-friendly insurance statutes and
regulations in the future, as they (erroneously)
claim poverty while actually pocketing record
profits.
Back to top
|
| |
|
 |
|
//
